Charm Communications Whiffs on Earnings
Charm Communications (NAS: CHRM) reported earnings yesterday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Charm Communications met expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue increased significantly, and GAAP earnings per share increased significantly.
Margins dropped across the board.
Charm Communications recorded revenue of $80.3 million. The one analyst polled by S&P Capital IQ predicted net sales of $80.1 million on the same basis. GAAP reported sales were 42% higher than the prior-year quarter's $56.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.36. The one earnings estimate compiled by S&P Capital IQ averaged $0.40 per share. GAAP EPS of $0.36 for Q4 were 29% higher than the prior-year quarter's $0.28 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 35.5%, 350 basis points worse than the prior-year quarter. Operating margin was 19.3%, 560 basis points worse than the prior-year quarter. Net margin was 18.4%, 270 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $77.3 million. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $282.4 million. The average EPS estimate is $1.47.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 13 members rating the stock outperform and three members rating it underperform. Among two CAPS All-Star picks (recommendations by the highest-ranked CAPS members), one gives Charm Communications a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Charm Communications is outperform, with an average price target of $14.
Over the decades, small-cap stocks like Charm Communications have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Charm Communications to My Watchlist.
At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.